A path traversal vulnerability exists in the "_create_model_version()" function within "server/handlers.py" of the mlflow/mlflow repository, due to improper validation of the "source" parameter. Attackers can exploit this vulnerability by crafting a "source" parameter that bypasses the "_validate_non_local_source_contains_relative_paths(source)" function's checks, allowing for arbitrary file read access on the server. The issue arises from the handling of unquoted URL characters and the subsequent misuse of the original "source" value for model version creation, leading to the exposure of sensitive files when interacting with the "/model-versions/get-artifact" handler.